VietJet Air sets up cargo company

The VietjetAir Cargo
Joint Stock Company recently made its debut, offering shipping services
on all the carrier’s domestic and international routes.

The company now has a fleet of freighters, providing air charter
services for domestic and international markets. It will also coordinate
with international airlines with a view to expanding its transportation
network.

According to VietjetAir Cargo Chief
Executive Officer Do Xuan Quang, without a freighter fleet, Vietnam has
yet to take full advantage of its potential air cargo market, which is
currently dominated by foreign airlines.

The
establishment of the cargo transportation company provides a number of
opportunities, as well as challenges, especially the management of a new
business model at a time when Vietnam is still in the midst of the
international integration process.

According to
the International Air Transport Association (IATA), the Vietnamese
aviation sector carried a total of 680,000 tonnes of goods in 2013,
quite small in comparison to the 300 million tonnes transported by the
country’s marine shipping sector each year.

However, the value of goods transported by air accounts for 25 percent
of Vietnam’s total export revenue, since the majority of air cargo is
high-price products like electronics, mobile phones and spare parts.-VNA